The program requires businesses to either cut pollution or purchase state credits that allow their emissions. Money from the sale of the credits goes toward a variety of transportation and clean energy programs.

The lawsuit argues that essentially amounts to a tax on businesses, which would have required a two-thirds vote in the Legislature to create, but cap-and-trade was created through a majority vote.

The state Supreme Court can decide whether to accept the case or allow the appeals court ruling to stand.

As the State Government Reporter, Ben covered California politics, policy and the interaction between the two. He previously reported on local and state politics, business, energy, and environment for WFAE in Charlotte, North Carolina. Read Full Bio